Hugely interesting development in Asia-Pacific with news that Expedia has entered into a joint partnership with low cost carrier AirAsia.
The pair will launch a new company (confirmed as a 50:50 partnership) to operate Expedia's branded businesses in Japan, East and South East Asia as well as the carrier's AirAsiaGo and GoRooms platforms.
Perhaps most significantly the deal will see exclusive third party online distribution rights in the region for AirAsia and long haul division AirAsiaX only through the AirAsia websites and Expedia.
Such is the importance of the deal to Expedia that legendary heavyweight of online travel, chairman Barry Diller, was on-hand in Singapore to announce the partnership with AirAsia CEO Tony Fernandes.
Expedia's inventory on the hotel end (130,000 properties) will see a dizzying array of packages now made available through AirAsiaGo, as well as AirAsia-led flight and package deals through the Expedia-branded sites in the region.
The joint venture is arguably one of the most interesting elements of the whole deal, especially as established global players trying to grow in the Asia-Pacific region have tried acquisitions and branded launches to gain a foothold.
But such major brands have failed to secure market leading positions in a string of Asia countries, including India, China, Taiwan or South Korea.
Travelocity, which has its Zuji brand in the region but has also seen acquisitions in Taiwan and Korea come and go, is likely to be the number one target for the Expedia-AirAsia deal, although Priceline's efforts through the Agoda and Booking.com businesses as well as the existing local brands will also be in Expedia's sights.
NB: Additional reporting and image by Siew Hoon Yeoh (WIT and Tnooz).
NB2: WIT story includes details of various promos to celebrate the partnership.